EURUSD
While annual inflation in the Euro Zone decreased by 0.4% on a monthly basis in December, it fell to single digits with 9.2% compared to the same period of the previous year. In the US, the producer price index decreased by 0.5% on a monthly basis in December, while it increased by 6.2% on an annual basis, experiencing the biggest decline since the pandemic. The fall in energy and food prices contributed to the decrease in producer inflation. While retail sales in the country fell above the expectations by 1.1%, a similar picture was seen on the industrial production side. The decrease in the demand front was effective in the pressure on the sector. While the concerns about the recession gained strength after the announced data, the weak course in the dollar index continues.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1.0986 |
| Resistance 2 | 1.0937 |
| Resistance 1 | 1.0865 |
| Support 1 | 1.0744 |
| Support 2 | 1.0694 |
| Support 3 | 1.0622 |
Daily Pivot Levels
GBPUSD
Inflation in England continued to decline in the second month, but still remained in double digits. Annual inflation fell to 10.5 percent in December, according to data from the UK Statistics Office. Inflation was 10.7 percent in the previous month and peaked at 11.1 percent in October. This slowdown signaled that the worst cost-of-living crisis in a long time was beginning to subside. While fuel and clothing prices were effective in the slowdown, there was an increase in food, restaurant and hotel prices. Core inflation remained unchanged at 6.3 percent annually.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1.2615 |
| Resistance 2 | 1.2525 |
| Resistance 1 | 1.2434 |
| Support 1 | 1.2253 |
| Support 2 | 1.2163 |
| Support 3 | 1.2072 |
Daily Pivot Levels
XAUUSD
Although there is a limited decrease below the 1900$ level, it is still above this level. The dollar index is trading at 102.30 this morning. On the agenda of global markets, there are statements from Fed officials. Statements supporting the rate hike continue. The declining US industrial production data for December, which was announced yesterday, also caused an increase in recession concerns in the markets. In the light of these headlines, it is noteworthy that the risk appetite in global markets is not very strong. There are data to be announced in the USA today, and the speeches of Fed members can be followed during the day.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1950 |
| Resistance 2 | 1938 |
| Resistance 1 | 1921 |
| Support 2 | 1891 |
| Support 3 | 1879 |
| Support 1 | 1862 |
Daily Pivot Levels
BRENT OIL
Oil prices are watching movements with sellers this morning. API weekly oil inventories increased by 7.6 mn barrels last week. There was an increase of 14 million barrels in the previous week. The increase in stocks is interpreted as negative data for oil. It is negative data, albeit limited. Decline in industrial production in the US, announced yesterday, led to an increase in recession concerns in the markets. Oil prices are following a selling course with high stocks and recession concerns. Weekly oil stocks to be announced by the DOE can be tracked today. The International Energy Agency stated in its monthly report that there may be a record demand for oil this year.
S&P500
Investors started today with low risk appetite as US retail and PPI data triggered growth concerns. This situation causes a decrease in stock indices and a prolongation of the rally in bonds. The S&P 500 closed the session yesterday at 3,928, down 1.56%. As of this morning, the S&P 500 December futures contract is at 3,940 and its horizontal outlook is followed.
